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A multi-criteria optimization proposal for aid allocation: combining donor and recipient interests.

Authors

MUÑOZ OCAÑA, YOLANDA, TORRES JIMÉNEZ, MERCEDES, CARBONERO RUZ, MARIANO, PACHECO MARTÍNEZ, ANA MARÍA

External publication

No

Means

Rev. Econ. Mund.

Scope

Article

Nature

Científica

JCR Quartile

SJR Quartile

JCR Impact

0.5

SJR Impact

0.253

Publication date

15/12/2022

ISI

000973675700008

Abstract

It is well known that donors pursue different objectives (altruistic objectives or those based on recipient, and donor interests) in granting their aid. This study proposes an innovative tool that enables a combination of both types of objectives, allowing each donor (bilateral or multilateral) to better understand, optimise and target the distribution of its ODA according to the interests of both parties to the transaction (donor and recipient). This tool uses concentration curves and Suits' indices to determine an optimal distribution of aid through the development of a constrained optimisation program that encompasses all of its purposes. Furthermore, used at the aggregate level, this tool could facilitate donor coordination to achieve international development goals.

Keywords

Official Development Assistant; Donor country interest; Recipient country interest; Foreign aid allocation; Multicriteria optimization